This Thursday INSIDER Daily Digest has news on the Pentagon's use of private equity investments, plus shipbuilding and cybersecurity coverage from the fiscal year 2027 defense policy bill.

Sens. Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT) and Rep. Ro Khanna (D-CA) want the Defense Department to justify its use of private equity investments:

Dems want answers from Hegseth on DOD's increased reliance on private equity investments

A team of Democratic lawmakers concerned with the Pentagon's increased reliance on private equity investments is seeking answers from Defense Secretary Pete Hegseth, citing "national security threats and risks to taxpayers."

Document: Democrat lawmakers' letter to DOD on private equity

Some shipbuilding news:

HII targeting 30% distributed shipbuilding increase in 2026

After doubling distributed shipbuilding in 2025, HII aims to further increase production outsourcing by 30% in 2026 as it adjusts to rapidly growing demand from the Navy, according to CEO Chris Kastner.

Lawmakers propose increase to foreign-built, used ship purchases

The House Armed Services Committee's initial draft of the fiscal year 2027 defense policy bill would allow the Navy to purchase more used, foreign-constructed vessels through the National Defense Sealift Fund following debate last year over sealift recapitalization and domestic production.

Some military munitions coverage:

House authorizers calling on Army to expand 155mm artillery production

The House Armed Services tactical air and land forces subcommittee, in a mark of the draft defense authorization legislation released yesterday, is calling on the Army to expand and upgrade facilities that produce 155mm ammunition.

Lockheed shifts focus to diversifying operations amid DOD munitions surge

As Lockheed Martin begins to make headway on its vast framework agreements with the Pentagon to accelerate missile production, the company wants to encourage "operational discipline and excellence" across its entire enterprise, the company's CEO said this week.

Missile defense news:

MDA special access program positioned for sharp boost in FY-27, likely supporting Golden Dome ecosystem

​The Missile Defense Agency is seeking $1.7 billion in fiscal year 2027 for a classified special access program -- a more-than-threefold increase over the prior year -- in what appears to be a complementary funding stream that works alongside the administration's Golden Dome for America initiative.

Some cyber and defense software news:

House policy bill features realignment of DOD cyber responsibilities, ZT provisions and open-source software

The House version of the fiscal year 2027 defense authorization bill, set for a June 4 committee mark-up, would require a review and potential realignment of the Defense Department's cyber responsibilities, along with studies on zero trust, open-source software and agentic artificial intelligence.

Pentagon CIO Davies touts zero trust to gain visibility, as Navy launches licensing vehicle for Microsoft 365

Defense Department Chief Information Officer Kirsten Davies highlighted efforts to gain visibility through the launch of a massive licensing vehicle for Microsoft 365 services, which she argued will help with the implementation of zero-trust cybersecurity policies.